Prosecutors have decided to drop the case against the actress in connection with the September 19 incident.

Police released surveillance video showing the 26-year-old behind the wheel of a black Porsche driving through a crowd and into an alleyway near the Dream Hotel in Chelsea.

Restaurant worker Jose Rodriguez, of Jersey City, claimed Lohan had clipped him with the car and then drove away, but it was never proven.

The video shows Rodriguez passing in front of the car, police said. As the Porsche turns into the alley Rodriguez is seen with his back to the car before stepping to the side, police said. After the Porsche is seen going down the alley in the video, the man can be seen following it into the passageway.

Rodriguez called 911 and was treated at the hospital and released for a knee injury, police said.

Lohan was arrested on a charge of leaving the scene of an accident causing an injury and was given a desk appearance ticket with a court date set for Oct. 23.

Lohan’s spokesman had said the incident was “much ado about nothing.”

The alleged incident occurred while Lohan was on probation for stealing a necklace from a California jewelry store.